Asked by somebody
I am having trouble figuring out the correct code. I am trying to do an unrestricted and restricted model of a Cobb-Douglas Production Model.
lnQ=B1 + B2 lnL + B3 lnK + e
This is my code
data cobb;
infile 'cobb';
input q l k;
proc reg data = cobb;
model q = l k; <-----doing something wrong here
test l + k= 1; <-----doing something wrong here
run;
Am being asked to re-estimate the model with the restriction of CRTS, B2 + B3 =1.
lnQ=B1 + B2 lnL + B3 lnK + e
This is my code
data cobb;
infile 'cobb';
input q l k;
proc reg data = cobb;
model q = l k; <-----doing something wrong here
test l + k= 1; <-----doing something wrong here
run;
Am being asked to re-estimate the model with the restriction of CRTS, B2 + B3 =1.